Currently, financial account holders utilize their accounts whenever they choose, for example by using a credit card to make a purchase at a point of sale (POS), over the phone, or over the Internet. In the case of a checking account, account holders write checks to be cleared at some future undetermined time. The checks are generally cleared without further input from the account holder.
In the event that an account holder misplaces a card or a checkbook, the account holder can contact the financial institution sponsoring the account by telephone or in person and place a temporary hold on the account. In the event that a card or account information is stolen, the account holder can cancel the account and open a new account.
While these options serve to terminate fraud, they may not serve to prevent fraud or give account holders control over the disposition of their accounts.
Thus, a solution is needed that has application for lost or stolen cards and serves as a precautionary measure to warn both an account holder and a financial institution when the account holder is not expecting to make any purchases during a specified time frame. The solution should further make the account unavailable to unauthorized users when the account holder has reason to suspect such unauthorized use.